Anglo American to cut hundreds of coal jobs

Anglo American (LSE: AAL) will shed more than 200 jobs from its Queensland coal division as weak prices and high state royalties hit profits.

The company confirmed the cuts would fall across its Brisbane office and mine sites, with many roles to go through voluntary redundancies. Production will not be affected, it said.

Workers at the Grosvenor underground mine near Moranbah, which has remained shut since a fire in June 2024, are among those offered redundancies. The Australian Financial Review reported that close to 300 roles would be eliminated, with Grosvenor the main focus.

Anglo, the world’s third-largest seaborne exporter of steelmaking coal, said the decision reflects ongoing market pressures. The changes are vital for the company’s steelmaking coal operations in Central Queensland, it said in a statement published by the Australian Broadcasting Corporation (ABC).

The miner said it had briefed unions and local officials but declined to confirm the total number of jobs.

Thousand affected

Anglo, which is in the midst of merging with Canada’s Teck Resources (TSX: TECK.A TECK.B, NYSE: TECK), is trying to sell the Queensland mines after a deal with Peabody Energy (NYSE: BTU) collapsed last month.

The news follows BHP’s decision to cut 750 jobs and mothball its Saraji South mine from November. Isaac Regional Council Mayor Kelly Vea Vea told the ABC the combined impact of Anglo and BHP’s announcements affects about 1,020 jobs across the region.

The layoffs add to growing pressure in Queensland’s coal industry after Bowen Coking Coal entered administration earlier this year.

Shares in Anglo American gained 0.4% to £25.27 in London afternoon trading for a company market value of £29.8 billion (US$40.4 billion).